The New Fiduciaries

MassMutual Expands Fiduciary Support Services for Retirement Plan Investment Selection and Monitoring

Retirement plan sponsors now have greater flexibility, new tools and technology to help manage their fiduciary obligations and risks

SPRINGFIELD, Mass. — September 21, 2016 – Massachusetts Mutual Life Insurance Co. (MassMutual) is expanding its fiduciary support services for retirement plan investment selection and monitoring, offering employers greater flexibility as well as new digital assessment and tracking tools.

“We’re expanding our fiduciary services in response to ‘voice of the customer’ feedback from employers and financial advisors, incorporating a series of enhancements to provide more options, more choices and more customization,” said Tina Wilson, Senior Vice President, Investment Solutions Innovation.

“Our new services are complemented by our new Fiduciary Support Analyzer, which can help retirement plan sponsors determine their relative risk and need for fiduciary support, and our new tracking guide.”

Expanded Fiduciary Protection

MassMutual’s Fiduciary Assure® program, provided by Envestnet Retirement Solutions, LLC (ERS), now offers two levels of fiduciary oversight for retirement plan investments. ERS is a majority-owned subsidiary of Envestnet, Inc. (NYSE: ENV). ERS is a registered investment advisor. Envestnet, Inc. is not affiliated with MassMutual or any of its subsidiaries.

Fiduciary Assure provides sponsors with different levels of support, greater flexibility and more investment choices than typically available through fiduciary investment support services, according to Wilson. Both the new 3(38) service and the existing 3(21) service offers sponsors a wide range of investment options to choose from, she said.

Both the 3(38) and 3(21) services are available at no additional cost to retirement plans with less than $5 million in recordkeeping assets, according to Wilson. Larger plans pay a fee of two basis points for either service, she said.

Under the 3(38) service, sponsors can allocate certain fiduciary investment responsibilities to ERS. ERS or the plan sponsor develops the investment lineup from a pre-approved list of investment options. ERS monitors the investment performance and directs MassMutual to adjust the investment lineup as needed in order to meet core asset class requirements.

With the 3(21) service, sponsors share their fiduciary investment responsibility with ERS. Sponsors retain the ultimate decision-making authority provided their investment lineup includes at least one investment option in each of four core asset classes (cash equivalent, domestic bond, domestic equity and foreign equity) from a pre-selected list provided by ERS. Or, sponsors can opt for a pre-selected investment lineup. Sponsors are responsible for making ongoing investment line-up changes in order to maintain the core asset class requirements.

As part of the enhancements, Fiduciary Assure provides sponsors and advisors digital access to critical reporting information, Wilson said. Separate websites enable sponsors and advisors to monitor fiduciary compliance by providing “fingertip access” to reporting that is specific to each retirement plan. Sponsors’ fiduciary investment reports are housed within an online data vault. Sponsors can learn more about Fiduciary Assure as well as their own fiduciary investment responsibilities here.

Envestnet serves more than 5.7 million investor accounts and has more than $1 trillion in assets under management and administration and subscription/licensing arrangements. The firm, which Wilson says complements MassMutual’s “advisor centric approach,” supports more than 51,000 advisors worldwide1.

New Analysis Tool

Fiduciary Assure gives sponsors both the protection they need and the choices, information and technology they want

MassMutual’s new Fiduciary Support Analyzer helps ascertain employers’ knowledge of their fiduciary investment responsibilities; evaluates their relative risk and need for support; and connects to educational resources. If a sponsor currently uses a fiduciary service, the tool evaluates the level of support provided and, if there is a gap, recommends alternatives.

Fiduciary Planning Guide

MassMutual is introducing a digital fiduciary planning guide and calendar that helps advisors and sponsors track key fiduciary filing dates for both defined contribution and defined benefit plans. The guide contains key dates that plan fiduciaries should be aware of related to plan filings, notices, distributions, testing and reporting requirements.

“Fiduciary Assure gives sponsors both the protection they need and the choices, information and technology they want at the right price,” Wilson said. “We urge advisors and sponsors to compare MassMutual’s comprehensive fiduciary support, including our investment protection services, Fiduciary Support Analyzer and tracking guide, with any others on the market.”

By making the Fiduciary Assure Program and Fiduciary Support Analyzer available to plans, MassMutual is not recommending or endorsing ERS or the Program. Plan Sponsors are solely responsible for deciding whether to take advantage of the Program and any other fiduciary support services available through MassMutual.




About Envestnet
Envestnet, Inc. (NYSE: ENV) is a leading provider of unified wealth management technology and services to investment advisors. Our open-architecture platforms unify and fortify the wealth management process, delivering unparalleled flexibility, accuracy, performance, and value. Envestnet solutions enable the transformation of wealth management into a transparent, independent, objective, and fully-aligned standard of care, and empower advisors to deliver better outcomes.
Envestnet’s Advisor Suite® software empowers financial advisors to better manage client outcomes and strengthen their practices. Envestnet provides institutional-quality research and advanced portfolio solutions through our Portfolio Management Consultants group, Envestnet | PMC®. Envestnet | Tamarac provides leading rebalancing, reporting, and practice management software.
Envestnet | Yodlee is a leading data aggregation and data analytics platform powering dynamic, cloud-based innovation for digital financial services. More than 1,000 companies, including 12 of the 20 largest U.S. banks and hundreds of Internet services companies, subscribe to the Envestnet | Yodlee platform to power personalized financial apps and services for millions of consumers. Envestnet | Yodlee solutions help improve the speed and delivery of financial innovation, improve digital customer experiences, and drive better outcomes for our clients and their customers.
About MassMutual
MassMutual is a leading mutual life insurance company that is run for the benefit of its members and participating policyowners. MassMutual offers a wide range of financial products and services, including life insurance, disability income insurance, long term care insurance, annuities, retirement plans and other employee benefits. For more information, visit here.
MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives.
1As of 6/30/2016